Money Supply

What Does Money Supply Mean?
The entire quantity of bills, coins, loans, credit and other liquid instruments in a country's economy.

Investopedia explains Money Supply
Money supply is divided into multiple categories - M0, M1, M2 and M3 - according to the type and size of account in which the instrument is kept. The money supply is important to economists trying to understand how policies will affect interest rates and growth.

Filed Under: Economics, Forex

Related Terms

Federal Reserve Float
Liquidity Squeeze
M0
M1
M2
M3
Monetary Policy
Monetary Theory
Narrow Money
Quantitative Easing
More Related Terms

Related Links

Formulating Monetary Policy - Learn about the tools the Fed uses to influence interest rates and general economic conditions.
What Is Money? - It's a part of everyone's life, and we all want it, but do you know how it gains value and how it is created?
What Is Fiscal Policy? - Learn how governments adjust taxes and government spending to moderate the economy.
Interest Rates And Your Bond Investments - By understanding the factors that influence interest rates, you can learn to anticipate their movement and profit from it.
The Federal Reserve - Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
The Importance Of Inflation And GDP - Learn the underlying theories behind these concepts and what they can mean for your portfolio.
How do central banks inject money into the economy?
How do open market operations affect the U.S. money supply?

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